Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $3,520 |
| 1 Bedroom | $3,630 |
| 2 Bedrooms | $4,340 |
| 3 Bedrooms | $5,170 |
| 4 Bedrooms | $5,700 |
| 5 Bedrooms | $6,612 |
| 6 Bedrooms | $7,405 |
| 7 Bedrooms | $7,997 |
| 8 Bedrooms | $8,397 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $4,340 | $1,022,846 | 0.42% | F |
| 3BR | $5,170 | $1,335,895 | 0.39% | F |
| 4BR | $5,700 | $1,713,899 | 0.33% | F |
| 5BR | $6,612 | $2,168,855 | 0.3% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 02461, located in Newton, Massachusetts, does not work favorably for landlords. The Fair Market Rent (FMR) set by HUD for the area in fiscal year 2024 is $4230. However, the Census ACS reports the market rent at only $2,978. This discrepancy means that landlords aiming to meet the HUD FMR would be overcharging compared to the actual market conditions, potentially leading to reduced tenant interest.
Acquisition in ZIP 02461 is challenging due to high property values. The median home value stands at $1,512,089, which is significantly above average for the region. With no data available on days on market (DOM) or the percentage of homes requiring price cuts, it suggests that properties are likely selling quickly at or near asking price. This environment makes it difficult for small-portfolio investors to find affordable entry points into the market.
Tenant demand in ZIP 02461 is present but limited. The population of the area is 6,975, with 23.8% being renters. This indicates that while there is a pool of potential tenants, the overall demand might not be robust enough to sustain higher rents consistently. Given the relatively small number of residents and the lower renter share, landlords must carefully consider their pricing strategy to attract and retain tenants.
In summary, ZIP 02461 presents a challenging investment scenario for landlords and small-portfolio investors. The rent math is unfavorable, with HUD's FMR exceeding the market rate. Acquisition costs are prohibitively high, limiting the ability to scale investments. Tenant demand exists but is not strong enough to support premium rents. Therefore, this area is not recommended for those looking to enter or expand their rental property portfolio.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.